"The CAR of national banks is at 18 percent level while their gross non-performing loan remains below five percent."
Manado, North Sulawesi (ANTARA News) - The stability of Indonesia`s financial system , especially banks, has remained well-maintained, a central bank official said here on Monday.

"The banking system in Indonesia is maintained well while the function of intermediary and liquidity keep improving," Bank Indonesia deputy governor Ardhayadi Mitroatmodjo said at a meeting with North Sulawesi provincial administration, banking, chamber of commerce and real sector associations officials.

He said the national banking industry was quite stable now marked by the conditions of the capital and liquidity which were maintained well as shown by their high capital adequacy ratio (CAR).

"The CAR of national banks is at 18 percent level while their gross non-performing loan remains below five percent," he said.

BI requires banks to keep their non-performing loans at maximally five percent and so with their NPL now at below five percent it means the banks are able to keep the rate of problem loans below the worrying level, he said.

The banks` intermediary role is also improving reflected by credit growth which is increasing this year compared to last year, he said.

"Year-on-year credits have risen 25.1 percent. What is interesting is the growth happens in all credit types including credit to the micro, small and medium businesses," he said.

He said the conditions were more complete with investment this year was predicted to record a positive growth.

"Investment has started to grow since 2010 and is predicted to keep growing this year to make economic growth structure more balanced," he said.

The high economic growth this year would also be supported by external performance which remains solid, he said.

"Exports will be more diversified and high while imports will also grow fast in line with increasing investment and consumption activities," he said.

He said the achievement was more significant because it happened while the global situation was still uncertain and in the midst of various natural disasters in the country as well as other countries.
(Uu.H-YH/HAJM/A014)

Editor: Priyambodo RH
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